PSA sales slide on China weakness, sees slight Brexit impact

Reuters

Reuters

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PARIS (Reuters) - PSA Group's <PEUP.PA> first-half sales fell 0.2 percent, the French carmaker said on Tuesday, citing difficulties in a weaker, "westernising" Chinese market that obscured a stronger performance at home in Europe.

The European market is likely to see a slight decline following Britain's June 23 referendum vote to leave the European Union, the company also cautioned.

"In China we're in the process of adapting to a fast-changing market that is westernising and no longer in rapid growth," the group's Europe chief Denis Martin told reporters on a call.

Chinese mid-market consumers are gravitating to competitively priced SUVs built by domestic carmakers, putting pressure on western brands. PSA plans to defend its corner with an imminent product offensive that includes five four-by-four offerings.

Martin said the European market may suffer a "slight slowdown" in the second half following Britain's June 23 referendum vote to leave the European Union. But he maintained the company's 4 percent growth forecast for the full year.